Silver Market Update

The jury has returned its verdict - "Silver has double-topped with its
April highs". So silver bulls can forget about any new highs for a while.
Although silver has powerful bullish forces underpinning it, the same factors
that are set to precipitate an intermediate reaction in gold, principally a
rally in the dollar, are expected to have a similar effect on silver, although
due to the strength of the bullish forces at work in silver, it is considered
more likely that a trading range will develop, lasting perhaps several months.

On the 6-month chart we can see the phoney break higher on Thursday, that
failed to take the price well clear of the April highs, and the reaction on
Friday that accelerated dramatically today, as the metals had the rug pulled
out from under them by today's snapback rally in the dollar, mentioned as a
growing probability in the big article on the site at the weekend.

Given the severity of today's drop, especially in gold, it is quite likely
that we will see a minor rally over the next day or two, which traders should
use to sell, with a view to repurchasing in the $12 area, where there is strong
support bolstered by the proximity of the 50-day moving average.

The above represents the opinion and analysis of Mr. Maund,
based on data available to him, at the time of writing. Mr. Maunds opinions
are his own, and are not a recommendation or an offer to buy or sell securities.
No responsibility can be accepted for losses that may result as a consequence
of trading on the basis of this analysis.

Mr. Maund is an independent analyst who receives no compensation
of any kind from any groups, individuals or corporations mentioned in his reports.
As trading and investing in any financial markets may involve serious risk
of loss, Mr. Maund recommends that you consult with a qualified investment
advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction
and do your own due diligence and research when making any kind of a transaction
with financial ramifications.